Aston Martin & AMG Announce Technical Partnership, Daimler to Buy Up to 5% Stake in AM

TTAC Staff
by TTAC Staff
aston martin amg announce technical partnership daimler to buy up to 5 stake in

As part of an announced technical partnership between AMG, the performance subsidiary of Mercedes-Benz and Britain’s Aston Martin, Daimler will buy up to a 5% interest in the luxury performance car maker. The agreement will give AM “significant access” to the technical resources of both AMG and its parent. Aston Martin will use those resources to develop V8 engines and have access to Mercedes Benz’s electronic architecture and components.

Aston Martin product development director Ian Minards said, “We have selected AMG specifically as the basis for this powertrain development process.”

On behalf of AMG, the performance brand’s chief, Ola Kaellenius said that the technical partnership is “proof of AMG’s technological and performance expertise, and a real win-win situation for both sides.”

Aston Martin’s engines are currently supplied by Ford, which formerly owned AM, at a Cologne, Germany plant. Aston Martin’s V12 engine is based on the architecture of Ford’s Duratec V6 engine. Aston’s V8 is a hand assembled version of the Jaguar AJ V8 engine, a practice that started when Ford owned both of those companies.

Automotive analysts say that the deal helps Aston Martin avoid the substantial costs of not just engine development, but also electronic systems, which have become increasingly important in the auto industry.

For Daimler, it gets to amortize some AMG costs and gives it a foothold to take control of Aston Martin later should its current investors want to pull out. Moody’s currently rates Aston Martin at B3, non-investment grade. Last year, the Investindustrial group of Italy bought a 37.5% share in the company for $241 million, through a capital increase negotiated with majority owner Investment Dar, a sovereign-wealth fund of Kuwait.

Aston Martin is currently the only premier luxury car maker that is not owned by a larger automotive group. In January, Aston Martin announced plans to invest spend $765 over the next four years to keep pace with VAG owned Bentley and Fiat owned Ferrari and Maserati. The UK company has had a rough go of it since the economic crisis of 2008, with a 9% drop in profits in 2012, and a 10% decline in sales, to ~3,800 cars.

So far, Daimler and Aston Martin have only signed a letter of intent, with definitive agreements to be inked later this year, pending regulatory approval. Daimler will buy the 5% stake in stages, depending on the progress of the technical partnership, and its stock will be non-voting shares.

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  • MBella MBella on Jul 27, 2013

    The concept of an Aston Martin powered by an AMG engine excites me. A Vantage with an AMG 157 twin turbo V8 would be pretty spectacular. A high end Aston with an AMG V12 would be astounding.

  • Ry_Trapp0 Ry_Trapp0 on Jul 28, 2013

    wow, seems to be quite a few MB appologists in here, "chrysler could NEVER do anything better than MB!!!" the truth is that, as has been alluded to, daimler absolutely and positively took what they could from chysler and left them for dead... despite what all the keyboard warriors want to believe, chrysler was immensely successful during the 90's, while MB was struggling. daimler recovered MB with what they could get from chysler, then practically payed cerberus to take them.

    • See 2 previous
    • MBella MBella on Jul 29, 2013

      Not one of those articles says anything about Daimler "stealing Chrysler's advanced technology". Chrysler was on the brink of a complete financial disaster towards the late 90s, and they needed to be bought out. That huge one billion dollar stock pile of cash that Daimler "stole" from the company they paid 30 billion for. Yes when you buy a company you keep whatever good there is. The only thing Mercedes received was contacts with a few American domestic suppliers that they used to build the first generation ML.

  • Analoggrotto Only allow Tesla drivers to race, we are the epitome of class and brilliance.
  • Wjtinfwb When my kids turned 16 and got their Operators, we spent $400 to send both (twins) to 2 driving schools. One held by the local Sherriff was pretty basic but a good starter on car control and dealing with police officers as they ran the school. Then they went to a full day class in N Atlanta on a racetrack, with the cars supplied by BMW. They learned evasive maneuvers, high speed braking, skid control on a wet skid pad and generally built a lot of confidence behind the wheel. Feeling better about their skills, we looked for cars. My son was adamant he wanted a manual, Halleluiah! Looking at used Civics and Golf's and concerned about reliability and safety, I got discouraged. Then noticed an AutoTrader adv. for a new leftover '16 Ford Focus ST six-speed. 25k MSRP advertised for $17,500. $2500 above my self-imposed limit. I went to look, a brand new car, 16 miles on it, black with just the sunroof. 3 year warranty and ABS, Airbags. One drive and the torquey turbo 2.0 convinced me and I bought it on the spot. 7 years and 66k miles later it still serves my son well with zero issues. My daughter was set on a Subaru, I easily found a year old Crosstrek with all the safety gear and only 3k miles. 21k but gave my wife and I lots of peace of mind. She still wheels the Subaru, loves it and it too has provided 7 years and 58k miles of low cost motoring. Buy what fits your budget but keep in mind total cost over the long haul and the peace of mind a reliable and safe car provides. Your kids are worth it.
  • Irvingklaws Here's something cheaper, non-german, and more intriguing...
  • Wjtinfwb Happy you're loving your Z4. Variety is the spice of life and an off-beat car like the Z4 intrigues me as well. More than anything, your article and pictures have me lusting for the dashboards of a decade ago. Big, round analog gauges. Knobs and buttons to dial up the A/C, Heat or Volume. Not a television screen in sight. Need to back up? Use the mirrors or look over your shoulder. If your Z4 had the six-speed manual, it would be about perfect. Today's electronified BMW's leave me ice cold, as do the new Mercedes and Audi's with their video game interiors. Even a lowly GTI cannot escape the glowing LED dashboard. I'm not a total luddite, Bluetooth streaming for the radio would be nice and I'd agree the cooled seats would be a bonus on a warm day with the top down. But the Atari dashboard is just a bridge too far for me.
  • Craiger Honestly I was incredibly disappointed by the lack of steering feel. I dropped off my 530 at the dealer in New Jersey and picked up the Z. Driving all of my familiar roads I was just shocked at how much info wasn't coming through the wheel. Because of that I was never able to push the Z like I did the 530.